Table of Content

Chapter 1:- Conceptual Overview

Chapter 2:- Research Methodology

Objective of Study

Scope and Rationale of Study Methodology Limitation of StudyChapter 3:- Theoretical Background

Chapter 4:- Case Study

Introduction of Company profile and Product

About the work in company done by students

Chapter 5:- Data Analysis Chapter 6:- FindingsBibliography

Annexure CHAPTER - 1Chapter 1:- Conceptual Overview

WHAT IS SHARE?

In finance a share is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's. In British English, the usage of the word share alone to refer solely to stocks is so common that it almost replaces the word stock itself.

In simple Words, a share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market.

By owning a share you can earn a portion and selling shares you get capital gain. So, your return is the dividend plus the capital gain. However, you also run a risk of making a capital loss if you have sold the share at a price below your buying price.

A company's stock price reflects what investors think about the stock, not necessarily what the company is "worth." For example, companies that are growing quickly often trade at a higher price than the company might currently be "worth." Stock prices are also affected by all forms of company and market news. Publicly traded companies are required to report quarterly on their financial status and earnings. Market forces and general investor opinions can also affect share price.

Quick Facts on Stocks and Shares Owning a stock or a share means you are a partial owner of the company, and you get voting rights in certain company issues

Over the long run, stocks have historically averaged about 10% annual returns However, stocks offer noguarantee of any returns and can lose value, even in the long run

Investments in stocks can generate returns through dividends, even if the price

How does one trade in shares ? Every transaction in the stock exchange is carried out through licensed members called brokers.

To trade in shares, you have to approach a broker However, since most stock exchange brokers deal in very high volumes, they generally do not entertain small investors. These brokers have a network of sub-brokers who provide them with orders.

The general investors should identify a sub-broker for regular trading in shares and palce his order for purchase and sale through the sub-broker. The sub/broker will transmit the order to his broker who will then execute it .

What are active Shares ?

Shares in which there are frequent and day-to-day dealings, as distinguished from partly active shares in which dealings are not so frequent. Most shares of leading companies would be active, particularly those which are sensitive to economic and political events and are, therefore, subject to sudden price movements. Some market analysts would define active shares as those which are bought and sold at least three times a week. Easy to buy or sell.

Share or Stock is an issue by a company. Which entitles its holder to be one of the owners of company?

A share is issue by a company or can be purchase from the Stock Market.

INITIAL PUBLIC OFFERING

Credits for public offers can be directly received into demat account. In the public issue application form of depository eligible companies, there will be a provision to indicate the manner in which securities should be allotted to the applicant. All you have to do is to mention your client account number and the name and identification number of your DP.

Any allotment due to you will be credited into your account.

If the applicant is allotted securities in dematerialized form, but the details regarding the beneficiary account are incomplete/ wrong, the person will get physical delivery of allotted securities.

If securities are allotted in the dematerialized form, these would be credited to applicants account

any day between allotment date and listing date, at the discretion of the company.

The issuer company/ their R&T agent will forward the applicant the allotment advice giving the number of shares allotted in dematerialized form. Through this you can come to know that you have been allotted shares.

An amendment to the company law requiring all future public issues above Rs100mn to compulsorily offer securities in dematerialized form is awaiting legislative approval. After this all the issues above Rs100mn will require investors to trade only in demat way.

Partly paid up and fully paid up shares in the depository, will be given separate ISINs (International Securities Identification Number). These are also traded separately at the stock exchanges.

The company issues call notices to the beneficial holders of securities in the electronic form. The details of such beneficial holders will be provided to the issuer/ their R&T agent by NSDL. After the call money realization, issuer/ their R&T agent will electronically convert the partly paid up shares to fully paid up shares.

It is the first (initial) sale of the stock by a company to the public.

They are often issued by smaller, younger companies seeking capital to expand.

By large privately-owned companies looking to become publicly traded.

When a company lists its shares on a public exchange, after 21 days it issue in share market

It is the first (initial) sale of the stock by a company to the public.

They are often issued by smaller, younger companies seeking capital to expand.

By large privately-owned companies looking to become publicly traded.It is the first (initial) sale of the stock by a company to the public.

1. They are often issued by smaller, younger companies seeking capital to expand.

2. By large privately-owned companies looking to become publicly traded.

When a company lists its shares on a public exchange, after 21 days it issue in share market.

What is trading?

Purchase & sale of share in share market is called trading. In every trading brokerage is applied whether it is purchase or sale of share.

Trading is the process of buying and selling securities. The procedure of trading consists of two processes, i.e. Delivery (when securities are sold) and Receipt (when securities are purchased). These two processes can be understood as follows:

In other words, Purchase & sale of share in share market is called trading. In every trading brokerage is applied whether it is purchase or sale of share.

Types Of Trading

There are two types of trading that can be done through online share trading :-

Intra day trading They enter and exit out of the market like the thief in the night. Traders continuously have a watch on the market during the trading hours and the moment they see any opportunity arising they pounce on it for scalping the profit out. These type of trading generally are risky in nature. They buy and sell stocks during the same day.

Intra day Traders are of two types :-

i. Scalp Traders Investors who perform many trades per day for scalping out small profits out of the bid-ask spread from each trade are known as scalp traders.

ii. Momentum Traders Investors who pounce on those stocks which move significantly in one direction and book desired profit are called momentum traders. They do this within a day.

For the intraday traders the brokerage costing is minuscule in comparison to the delivery trades.

Delivery trading The investor buys the share for holding purposes. The brokerage charges are a bit more than the intraday ones.

Delivery Traders are :-

i. Technical Traders They believe that buying/selling signals are present within the graphs and charts of the stock.

ii. Fundamental Traders They perform trade on the basis of study of fact-sheets of the company like historical profit graph, balance sheet, anticipated earning reports, stock splitsmergers and acquisitions, etc.

iii. Swing Traders They are basically fundamental traders who take delivery of trades for a span of short period generally more than one day.

In this electronic form of trading, the sharesare not in the physical form for their inconvenience to handle. So, they are now converted to dematerialized form . So, one investor does not have to worry about the safety of the physical shares because the bought shares get transferred to the respective D-mat account . Thus, online share trading has helped the investors a lot as it is hassle-free and time efficient.

MUHURT TRADING:-

Such trading which is takes place in the occasion or festival. When market is open for certain time.

Like-DIWALI ,AKSHAY TRITIYA

Trading at NSE

Trading in dematerialized securities is quite similar to trading in physical securities and is done

through the same "NEAT" terminals of the trading members (brokers)

Trading at BSE

Trading in dematerializedsecurities is quite similar to trading in physical securities and is done

through the same "BEST" terminals of the trading members(brokers)

Trading at LSE

Trading in dematerialized securities is quite similar to trading in physical securities and is done

through the same "VECTOR" terminals of the trading members (brokers)

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